Question

Candace purchases a car for $30000. The cars value depreciates 20% each year after she has driven it. What will the car be worth after 8 years?

Answer 1

Since cars value depreciates 20%, it's value in the next year is 80% or 0.8 of value in the previous. Thus, after 8 years it will be 0.8⁸ of the current one.

$30000*0.8^8=5033.1648$

So, value of the car after 8 years is $5033.1648.